Alex Is a non compete clause enforceable in NC?
Non-compete agreements are not viewed favorably under North Carolina law. To be valid, they must be designed to protect a legitimate business interest of the employer. If it is too broad to be considered a reasonable protection of the employer’s business, it will not be enforced.
Can a non-compete agreement be signed in North Carolina?
In general terms, North Carolina law has been viewed as protecting the employer when a potential new employee signs a non-compete agreement. Meanwhile, North Carolina law has been viewed as protecting the employee when a current employee signs a non-compete agreement.
Can a potential employee refuse to sign a non compete agreement?
In other words, the law presumes that the potential employee is in a position to refuse to sign the non-compete agreement. The offer of employment alone is sufficient consideration to support a non-compete agreement for a potential employee.
Is there a choice of law in a non-compete agreement?
Not having a choice of law provision. It is critical that a Non-Compete appropriately addresses the issue of which jurisdiction’s laws will govern the agreement. An agreement that is enforceable in one state may not be enforceable in another.
How many Noncompete agreements have been struck down in NC?
In fact, of the eight cases where a limitation of two years or less was struck down, all but one 26 either contained territorial restrictions of at least two-hundred miles 27 or applied to medical professionals 28.
In general terms, North Carolina law has been viewed as protecting the employer when a potential new employee signs a non-compete agreement. Meanwhile, North Carolina law has been viewed as protecting the employee when a current employee signs a non-compete agreement.
In other words, the law presumes that the potential employee is in a position to refuse to sign the non-compete agreement. The offer of employment alone is sufficient consideration to support a non-compete agreement for a potential employee.
What happens in a dispute over a non-compete contract?
In a dispute involving a non-compete contract, the court will usually try to determine if the terms of the contract are reasonable. If your employer presents you with a non-compete agreement and you decide to sign the contract, you are promising not to compete against your employer once your employment ends.
When does a non-compete agreement restrict territory?
If your non-compete agreement is intended to prevent an employee from using knowledge about your customers to assist a competitor, the restricted territory should be only those areas in which the employee made contacts during his or her employment. Thus, when courts review territorial limits, they consider: